The following management's discussion and analysis should be read in conjunction with the historical financial statements and the related notes thereto contained in this report. The management's discussion and analysis contains forward-looking statements, such as statements of our plans, objectives, expectations and intentions. Any statements that are not statements of historical fact are forward-looking statements. When used, the words "believe," "plan," "intend," "anticipate," "target," "estimate," "expect" and the like, and/or future tense or conditional constructions ("will," "may," "could," "should," etc.), or similar expressions, identify certain of these forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. The Company's actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this report.
The following discussion highlights the Company's results of operations and the
principal factors that have affected our financial condition, as well as our
liquidity and capital resources for the periods described, provides information
that management believes is relevant for an assessment and understanding of the
statements of financial condition and results of operations presented herein.
The following discussion and analysis are based on the Company's unaudited
financial statements contained in this Quarterly Report, which we have prepared
in accordance with
Company Overview
We are a supplier of technologically advanced plastics and other solutions for
the packaging industry and other industries primarily serving major end users
and distributors in
In 2021, through the acquisition target SMCOR, SINC expands deeper into our existing customer based in EV, 5G, computer chips and medical industries. In addition, the pandemic boosts the demand for covid related medical material and SINC boosted vaccine related production capacity through SIMCOR.
Three Months ended March 2022 2021 Note $ $ (Not Reviewed) (Not Reviewed) Revenue Sales 13,878 31,096 Cost of sales - (25,821 Gross profit 13,878 5,275 Operating expenses Depreciation and amortization 2,147 2,292 Selling, general and administrative expenses 1,925 2,661 Professional service fees 1,058 158 Total operating expenses 5,130 5,111 Profit/(Loss) from operations 8,748 164 Other income/(expenses) Other income - 11,749 Interest expense (1,402 ) (1,553 Foreign currency transaction loss 2,219 (2,090 Total other income/(expenses) 817 8,106 Income/(loss) from continuing operations before income tax expenses 9,565 8,270 Income tax benefit/(expense) 10 (2,878 ) (2,150 ) Net income/(loss) after income tax expense for the period 6,687 6,120 Other comprehensive income/(loss) Exchange differences arising on translation of foreign operations 19,472 10,434 Other comprehensive income/(loss) 19,472 10,434 Total comprehensive loss for the period 26,159 16,554 20 Revenues
Revenue was
Selling, general and administrative expenses
Selling, general and administrative expenses was
Employee expenses
No employee expenses were incurred for the 3 months ended
Professional service fees
Professional service fees were minimal for the three months ended
Other Income and Expenses
The decrease in other income and expenses was due to the financial assistance from the Australian Government in response to the effects of COVID-19 has ceased in 2021 and foreign currency transaction loss due to the appreciation of the Australian dollar against the US Dollar.
Liquidity and Capital Resources
At
Our primary uses of cash have been for operations. The main sources of cash have been sales to customers.
The Company believes that cash flow from operations will be sufficient to sustain its current level of operations for at least the next one month of operations.
21
As of
(i) The company entered into a Securities Purchase Agreement ("SPA") with ONE44
CAPITAL, LLC , aNevada limited liability company ("Purchaser"), pursuant to which we issued and sold to the Purchaser a convertible promissory note, datedApril 6, 2022 , in the principal amount of$120,000 (the "Note"). The Note contains an original issue discount amount of$9,000 and legal fees payable to ONE44's legal counsel of$6,000 . The maturity date of the Note isApril 6, 2023 ; (ii) The company entered into a Securities Purchase Agreement ("SPA") with 1800DIAGONAL LENDING LLC , aVirginia limited liability company, f/k/aSixth Street Lending, LLC ("Purchaser"), pursuant to which we issued and sold to the Purchaser a convertible promissory note, datedMay 4, 2022 , in the principal amount of$68,750 (the "Note"). The Note contains legal fees payable to Purchaser's legal counsel of$3,000 and to Purchaser a due diligence fee of$750 . The maturity date of the Note isMay 4, 2023 (the "Maturity Date"). The term sheet also includes optional additional tranches of financing of up to$900,000 during the term of the note subject to further agreement with the purchaser; and
(iii) The company has been streamlining its operation by reducing operation costs.
In the three months ended
Net cash generated used for investing activities was $nil for the three months
ended
Net cash used in financing activities was approximately
Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.
22 Key Estimates (i) Useful lives
The Company determines the estimated useful lives and related depreciation and amortization charges for its property and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortization charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
(ii) Income tax
The Company is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Company recognizes liabilities for anticipated tax audit issues based on the Company's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.
Key Judgements
(i) Provision for impairment of receivables
The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtors' financial position.
(ii) Impairment
The Company assessed that no indicators of impairment existed at the reporting date and as such no impairment testing was performed.
© Edgar Online, source